Evaluating Property Upgrades: Quantitative and Qualitative ROI

1. Evaluating Property Upgrades: Quantitative and Qualitative ROI 1 2 1 1 Determine total project cost Account for all expenses, including materials, labor, permits, and any rental income lost during the renovation period. Determine total project cost Account for all expenses, including materials, labor, permits, and any rental income lost during the renovation period. renovation period. Estimate potential rent increase: Find out what rent do comparable properties in your area command. Determine total project cost: Account for all expenses, including materials, labor, permits, and any rental income lost during the 1 3 1 4 Determine total project cost Account for all expenses, including materials, labor, permits, and any rental income lost during the renovation period. Determine total project cost Account for all expenses, including materials, labor, permits, and any rental income lost during the renovation period. Assess impact on property value: Check how similar upgrades have influenced resale prices locally. Calculate payback period: Divide total cost by expected rent increase to see how long it takes to recover your investment. 1 5 1 6 Determine total project cost Account for all expenses, including materials, labor, permits, and any rental income lost during the renovation period. Determine total project cost Account for all expenses, including materials, labor, permits, and any rental income lost during the renovation period. Consider ongoing savings: Factor in lower maintenance or utility costs from durable or energy-efficient upgrades. Measure occupancy improvement: Upgrades may reduce vacancy time or attract longer-term tenants. 1 7 1 8 Determine total project cost Account for all expenses, including materials, labor, permits, and any rental income lost during the renovation period. Determine total project cost Account for all expenses, including materials, labor, permits, and any rental income lost during the renovation period. Compare pre- and post- upgrade performance: Evaluate rent, expenses, and tenant satisfaction before and after the upgrades. Review ROI annually: Recalculate based on actual results and market shifts to guide future upgrades. www.hunterrentals.com Hunter Rentals& Sales 3207 E Stan Schlueter Lp, Killeen TX 76542 Phone:(254)634-3311